Chinese cash for European clubs ‘helps build bridges’

Sun Xiaochen

China will reap the benefits of overseas investments in professional football.

China’s ambitious investment in professional football overseas is likely to pay off at home with a boost in the domestic game, thanks to expertise gained from being close to the action in well-established foreign clubs, industry insiders said.

They were responding to critics who raised questions about football-obsessed Chinese tycoons scrambling to buy stakes in European clubs. Some have suggested that the fantastic sums of money involved would be better invested in football in China.

But James Johnson, head of FIFA’s professional football department, told China Daily that China will end up reaping the benefits of the overseas investments.

“I think it’s a double-edged sword,” Mr Johnson said. “It makes sense on one hand that you would hope the investment remains in China, but on the other hand, when you have invested in these clubs in Europe, you gain expertise and knowledge while developing networks that you couldn’t develop if you had not invested.”

Despite assurances that such investments will end up benefiting the Chinese domestic game, some pundits are not convinced

Mr Johnson was in Beijing as part of a delegation from the game’s world governing body attending the 2016 Professional Football Law and Governance Conference. The gathering attracted league executives and legal advisers from around the world.

The event was hosted by Sodasoccer of Beijing, a company that provides data analysis on professional football.

Han Qingshan, Sodasoccer’s chief executive, said becoming a shareholder in European clubs offers direct access and the chance to learn from professionals at the highest level.

“It helps build bridges between China and Europe in club operations, youth training and brand marketing and provides a chance to bring the know-how home from overseas,” he said.

Recently, investments by Chinese in football overseas have surged.

The Chinese businessman Xia Jiantong, who owns the Recon Group and describes himself as a fan of many years, bought the English club Aston Villa from its former owner, Randy Lerner of the United States, for a reported £70 million on May 18.

The purchase of Villa followed the $400 million (£275 million) investment by a Chinese consortium led by China Media Capital Holdings of Shanghai that gave it a 13 per cent stake in City Football Group, which owns Manchester City FC of the English Premier League.

Despite assurances that such investments will end up benefiting the Chinese domestic game, some pundits are not convinced.

“If you look at it, the first reason why these wealthy investors are doing this is for business reasons,” said David Frommer, senior strategic adviser at the European Club Association.

“They are buying for themselves, to build their prestige and because they want to make money out of it. I don’t see how much it will benefit Chinese football. I am not sure what the benefit will be.”